Last Updat­ed on April 14, 2023 by acci­dents

This table pro­vides an alpha­bet­i­cal glos­sary of com­mon terms relat­ed to car insur­ance and PIP claims. Under­stand­ing these terms can help you nav­i­gate the claim process more effec­tive­ly and ensure you’re aware of your rights and respon­si­bil­i­ties as a pol­i­cy­hold­er.

At-faultRefers to the par­ty respon­si­ble for caus­ing a car acci­dent due to neg­li­gence or unlaw­ful actions.
ClaimA request made by an insured indi­vid­ual to their insur­ance com­pa­ny for com­pen­sa­tion for dam­ages or expens­es result­ing from an acci­dent or cov­ered event.
DeductibleThe amount an insured indi­vid­ual must pay out-of-pock­et before the insur­ance com­pa­ny begins to cov­er expens­es or loss­es.
DenialA deci­sion by an insur­ance com­pa­ny to refuse pay­ment of a claim, usu­al­ly due to lack of cov­er­age, insuf­fi­cient evi­dence, or fail­ure to meet spe­cif­ic cri­te­ria.
Insur­ance adjusterA rep­re­sen­ta­tive of an insur­ance com­pa­ny respon­si­ble for inves­ti­gat­ing and eval­u­at­ing insur­ance claims to deter­mine the amount the insur­er should pay.
Lia­bil­i­ty cov­er­ageInsur­ance cov­er­age that pays for dam­ages and injuries sus­tained by oth­er par­ties in an acci­dent for which the pol­i­cy­hold­er is at fault.
No-fault insur­anceA type of car insur­ance in which an indi­vid­u­al’s own insur­ance com­pa­ny cov­ers their dam­ages and injuries, regard­less of who is at fault in an acci­dent.
Per­son­al Injury Pro­tec­tion (PIP)A type of no-fault car insur­ance cov­er­age that pays for med­ical expens­es, lost wages, and oth­er costs for the pol­i­cy­hold­er and their pas­sen­gers in the event of an acci­dent.
Pol­i­cyA con­tract between an insur­ance com­pa­ny and an insured indi­vid­ual that out­lines the terms and con­di­tions of insur­ance cov­er­age.
Pre­mi­umThe amount an insured indi­vid­ual pays to an insur­ance com­pa­ny for cov­er­age, usu­al­ly on a month­ly or annu­al basis.
Set­tle­mentAn agree­ment between an insured indi­vid­ual and an insur­ance com­pa­ny to resolve a claim, often involv­ing a pay­ment by the insur­er.
Sub­ro­ga­tionThe process by which an insur­ance com­pa­ny seeks to recov­er pay­ment from a third par­ty respon­si­ble for caus­ing dam­ages or loss­es cov­ered by the insur­er.
Uninsured/Underinsured motorist cov­er­ageInsur­ance cov­er­age that pro­tects the pol­i­cy­hold­er in the event they are involved in an acci­dent with a dri­ver who has insuf­fi­cient or no insur­ance to cov­er dam­ages and injuries.